Garda upsizes notes offering to $425 million; additional proceeds to fund dividend

By Paul A. Harris

Portland, Ore., Oct. 30 - Garda World Security Corp. upsized its offering of eight-year senior notes (B3/B-) to $425 million from $300 million, a market source said on Wednesday.

Although official price talk has not yet surfaced, the deal has been discussed in a yield context of 7 3/8% to 7½% and is expected to price on Thursday, according to a buyside source.

BofA Merrill Lynch and RBC Capital Markets are the joint global coordinators and joint bookrunners. TD Securities and Mizuho Securities are joint bookrunners.

The notes become callable after three years at par plus 75% of the coupon.

Along with the increased size of the bond offering, Garda also upsized its seven-year term loan B to $600 million from $525 million.

The increases were undertaken because of "significant demand" for both bonds and loans, the source said.

The Montreal-based provider of business solutions and security services plans to use the proceeds to refinance existing credit facility debt and senior unsecured notes due 2017 and fund the acquisition of G4S Cash Solutions for C$110 million.

Proceeds from the $200 million upsizing of the financing will be used to fund a distribution to shareholders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.